Have a say in Solano Irrigation District's rate plan

Customers with Solano Irrigation District will likely see a rate increase this month, pending board approval.

Those served by SID have another chance to weigh in on the proposed 9 percent water rate hike and a $10 per month capital replacement charge.

The outreach open house is at 4 p.m. Monday in the Solano Irrigation District Berryessa Room, 810 Vaca Valley Parkway, Suite 201.

Last Monday, the district held a similar outreach meeting, but only five customers showed up to hear a presentation and ask questions.

"The evening went very well, there was good conversation, but we're disappointed not very many people showed up," said District General Manager Cary Keaton.

The notice of the meeting was sent to 3,057 customers that will potentially be effected by the rate increase. So far, the district has only received six letters of opposition.

The water rate increase does not include municipal customers in the city of Dixon and Suisun City. Also, SID's agricultural customers do not pay the capital replacement charge as they are assessed capital charges differently.

To keep up with expenses and lost revenue, SID has reduced costs during the last three years and implemented $1.25 million in ongoing cost savings measures including relocation, reorganization of facilities, staff downsizing, reducing contractor costs and reducing consulting costs.

Although significant savings have been achieved, according to SID staff, the district can't keep up with cost increases and revenue losses in decreased property tax values, inability to sell excess lands and increased pension costs.

While the district has numerous revenue sources, not all of the sources can be utilized to cover general operating costs.

With expenses up and revenue down, the district has been drawing on its reserves. That means it hasn't had as much money to invest, so its income from investments has been less than projected.

Meanwhile, the district's reserves which should be at 50 percent of operating costs, have fallen to 34 percent.

Still, the district has a balanced 2013 budget, but carrying that into the next year looks bleak without a rate increase.

The district's board was divided with a vote of 3 to 2 in favor of proposing the 9 percent increase.

Board member Glen Grant said during the meeting in December that raising rates was imminent given that revenues from property taxes and interest earnings have decreased during the last few years, forcing the district to dip into its reserves.

"It's an unsustainable situation," he said.

He said increasing the rates is the only revenue the board can look at at this time since it's already reduced costs by cutting staff and backing away from maintenance.

"The only thing we have left to tweak is water rates," he said.

Board member John Kluge saw it differently. He said there was no need to move forward with an increase right away since SID already has a balanced budget for 2013. He said taking a conservative approach would give SID another opportunity to see if more revenues are received in a better economy.

The board will have a final vote on Feb. 19 and customers have until then to protest the proposed rate hike, and if 50 percent plus 1 do so, it won't be enacted.